When Is a Basement Flood Covered by Insurance?

2/9/2020 (Permalink)

A basement flood may not be covered by your regular insurance policy.

There is nothing worse than coming home to a basement flood after a long day. You may look at all the damage to your Whitemarsh, PA, house and wonder how you are going to pay for repairs.
Your insurance provider can help. However, a flooded basement is not always covered by insurance. Specifically, your insurer won't pay for repairs caused by any of the following:

Flooding
Unresolved maintenance
Outside drain or sewer

What Is Not Covered
If the provider determines that the flood resulted from a leak that you failed to address, your insurance claim will be denied. A homeowner's policy does not cover floods caused by over-saturation, surging bodies of water or major storms, either. The policy also won't pay for damages that result from water backing up into the basement through an outside sewer or drain.

However, you can purchase separate flood insurance from the National Flood Insurance Program. You can also buy sewer coverage as part of your homeowner's policy.

Your insurer won't cover the cause of the basement flood, either. If a washing machine or pipe leak led to the water damage, you will have to pay to repair or replace that item yourself.

What Is Covered
Homeowners insurance typically will pay for water damage to a home that results from an accidental or sudden event. Your policy likely contains both dwelling and personal property insurance coverage. Dwelling coverage deals with damage to the structure of your home, such as the walls and roof. Personal property coverage, meanwhile, pays for repairs to your belongings.

Your insurance may not reimburse you for everything, though. You likely have a deductible that you have to reach before the insurance money comes. Your policy may also have limits.

A basement flood may not be covered by your regular insurance policy. However, if you get additional flood insurance, you should get reimbursement from your provider. You can then use this money to pay for water damage repair services.